Commercial real estate services firm Cassidy Turley provided documents to the Watchdog showing the city recommended awarding the contract to the firm in September 2012. On Tuesday, the city sent a letter to Cassidy Turley canceling the bid after an 11-month process.

In a statement, Cassidy Turley San Diego President Dan Broderick said the company was disappointed and surprised the bid would be canceled after the city said the firm was determined to represent the best overall value for the city. The statement did not specify what costs Cassidy Turley bid for the contract.

Yes, Hughes will do a good job
46% (293)

No, the competitive bid process should have been honored
54% (342)

635 total votes.

“We are frankly even more surprised that the mayor has decided to retain volunteer services on something as important as the city’s real estate footprint downtown,” Broderick said. “We are evaluating our options and what response, if any, we will make to the termination notice and decision to change courses on retaining paid services versus volunteer help.”

The reason for Hughes’ free offer stems from now-dead plans under the Sanders administration to build a new City Hall, a project sold to the public as a way to save the city money on office leases. Hughes questioned the project’s supposed savings.

The city said Hughes was misinformed as it continued exploring the project. After the project was dropped, Hughes floated the free offer, which would give him the chance to prove he was right.

Document

“Be assured I have no ulterior motives, except to provide the city with the best professional commercial real estate service possible,” Hughes said in his August 2011 offer letter to Sanders. “To that end, I will sign an agreement that would prohibit me from receipt of any compensation whatsoever.”

London praised Filner’s decision to accept the offer.

“How could you not take him up on it? He’s the most experienced guy,” London said. “For reasons that don’t really matter, he said he would step up and do it for nothing and to this mayor’s good credit he’s taken him up on that offer.”

Still unclear is whether the city will renegotiate all three of its leases. The September 2012 analysis conducted by Gensler Architects of its office space needs suggest a range of approaches, including consolidating offices in the leased space, buying and selling buildings and reducing costs through negotiations.